FX.co ★ USD/JPY at resistance after positive NFPs

The USD/JPY pair rallied in the short term as the DXY edged higher while the Yen Futures dropped. It's trading at 132.09 at the time of writing below 132.37 today's high. The currency pair reached strong resistance levels, so it remains to see how it reacts.

Fundamentally, the US reported positive data. The NFPs came in at 236K above the 228K expected, Average Hourly Earnings rose by 0.3% versus the 0.2% growth in the previous reporting period, while the Unemployment Rate dropped to 3.5%. On the other hand, Japanese data came in mixed in the morning.

USD/JPY 132.37 As Key Obstacle!

Technically, the USD/JPY pair is challenging the lower median line (lml), the weekly pivot point of 132.24, and the 132.18 resistance level. As you can see on the H1 chart, the rate tested and retested the 150% Fibonacci line where it has found support.

False breakouts through the resistance levels may announce that the rebound ended and that the sellers could take the lead again.

USD/JPY Forecast!

A new higher high, a bullish closure above 132.37 activates further growth and brings new buying signals.